Note ban swells digital payments

New Delhi: Mobile and digital payment service providers are expected to witness a big surge in their business as many retailers will be compelled to switch to non-cash mode in the wake of demonetisation of higher denomination currency notes, says a report.

Besides, the number of such non-bank players with pre-paid payment instruments (PPIs) or mobile and digital wallet services are also expected to rise as people will have resort to such facilities to meet their daily expenses after the withdrawal of old Rs 500 and Rs 1,000 notes from circulation, according to the Assocham report.

While as many as 45 PPI players have started offering their services, it is only a handful of operators who are aggressively ramping up and marketing their operations, it said.

“However, demonetisation has come as a big opportunity for them. It is not only during this immediate cash crisis period that the PPIs would see a huge growth. Going forward too, they would penetrate into the small kirana stores as well,” Assocham secretary general D.S. Rawat said.